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tv   Fast Money  CNBC  January 30, 2018 5:00pm-6:00pm EST

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when someone suggested what are the new safe haven plays in a selloff? they posited it is tech. why would you go into consumer stables if you want that growth and that security. >> there was news, right facebook in the absence of news and anticipation of earnings tomorrow got a little bit. >> we'll cover that for you. that does it for "closing bell" today. "fast money" begins right now. "fast money" starts right now live from the nasdaq market site overlooking new york city's time square. i'm melissa li facebook cracks down on the cryptocurrency and a top market watcher says something has changed about the bitcoin story. he'll tell us what that is plus amazon takes no prisoners again. jeff bezos moving into health care and sending shock waves through the market but could it be the perfect buying student? we'll explain but we begin with
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stocks getting slammed the dow falling more than 400 points locking in its worst two-day selloff since brexit the dow hovering around 26,000 these 1% selloffs are a rare occurrence since the last one on september 5, it's up a whopping 2 20%. just in case you got selloff amnesia. merriam-webster define passeloff as "a usually sudden sharp decline in security prices accompanied by increased volume of trading." this this be your best chance to buy the dip? >> doesn't this feel good? this is something that a lot of people have been asking for. you've heard the stats, we haven't done this since brexit bottom line is the base i think remains very much intact in terms of the global economy, in terms of earnings that have been
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largely extraordinary. an upgrade cycle that would have existed even without a tax deal. we're going to get 12%, 13% ep growth on the s&p. now we've upgraded three or four bucks when we'll probably upgrade 15 bucks based upon taxes. but do you have to jump in and buy tomorrow i don't think so i think there's still head winds with the fed we feel had a slightly hot inflation number earlier today. we have rates going higher, markets that are concerned about a payroll report on friday that if that shows heat on the wages side people will be more concerned. >> 2.7% on the ten-year, that seems to have been the line in the sand. >> significant. >> it is. >> i think this is about tax reform the upward motion in the stock market, in the economy, is all about tax reform i do think today's selloff was month end. i think it was rebalancing, i think you'll see that unwind next couple days or so, having said that, i don't know what these companies will do with the money, with the cash, and nobody does so i think the market is looking
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ahead saying much higher prices, maybe another hundred handles or so this could be a buying opportunity. >> another hundred handles down? >> i would like to see the market sell off another 2% to get us back into -- >> before you dip your toe in? >> i'm fully allocated, i'm not selling. >> we think there's another 200 points down? we've been waiting for a pullback for so long investors have been belly aching that there's not been a pullback deep enough to buy here it is. >> it's two days i'm not sure this is it. >> look at the actual price moves on some of these stocks in percentage terms we didn't have a blip on the radar screen from the stand point of a ullback at all within the s&ps. we saw markets gravitate higher. i know we saw the retail money come flying in the bottom line is you see momentum and volume confirmed -- trading in tandem with price which is a very bullish signal that hasn't derailed the global economy hasn't
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derailed. >> so you buy or wait? >> you buy i think you buy stocks on any pullback. >> the context -- i know you were saying this is not long, this is not deep the context is what we said at the beginning. four 1% pullbacks in 2017. >> this is fantastic. >> we haven't seen anything in the past year. >> karen, you love this, don't you? >> i didn't do much today. it's a relief sometimes to see it sell off a little bit to me the biggest risk, which are still out there, we'll see it maybe tomorrow, is the fed feels inflation is getting ahead of where the fed is. if they raise something more aggressive than the market has baked in, that i see as the monkey wrench for the market otherwise i don't think -- >> not a possibility i don't think the fed can be as recent as december -- >> guys, we've been straight up on stocks. last week you had $35 billion going into eck we ti equities, been an unending bull market for
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seven eight years. what happened here is nothing and it's very healthy. >> i don't think the fed is going to come out and say inflation is getting ahead of where they think inflation is. you're saying that's a risk? >> that's the biggest risk also tonight, we'll see what the president's state of the union says maybe you get a bit under infrastructure stocks if he says something that's very bullish on infrastructure, i don't know i think on the heels of him having done what was considered a nice job at davos, i think the bar is a little higher for him here as opposed to last year when the bar was very low and he jumped over it so i don't know that we'll see a lot tonight. to me the fed and the interest rate, that is the biggest risk for emerging markets they all got clocked today as well. >> there was no safe haven in today's trade. that was the weird thing also about the selloff. >> look at the volatility index. it spiked a little
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so if it opens up down and we get more juice in the vix, then we can sell. >> nothing got a bid today. >> people think i have a personal vendetta against gold gold has had a perfect set of tail winds for itself and has done nothing, sold off 2% from the highs. it's supposed to be non-correlated, something that allows your portfolio to buffer. it hasn't been back to what steve said, the month end rebalancing is a significant dynamic, especially in a world when you get rates inching up to 273, 274 equities market have a lot of income in them and at some point people need to think about that. that's a dynamic that you feel on a day like today. >> you have to look at it from the standpoint of what's your view point on technology and financials i love tech and i love financials they make up 40% of the s&p so from the standpoint of that alone is indicative of the fact that i think this bull market continues to move. >> that was up 30% in a month.
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>> today was a quandt driven selloff. we didn't see any panicking in our desk whatsoever. we didn't see guys taking "take this order to sell x y z, we're moving out of this stock." 100% quandt driven from my perspective and we get frothy on the edges. buy the he can out of this market. >> when you say there was no safe haven, you're right only utilities caught a small bid. but i'm going to continue to look and be constructive on housing which has been great, had a great year last year and now it's getting caught up where interest rates are moving higher i don't think interest rates until they breach 4% are going to affect the housing market whatsoever i'm still long. >> in terms of the state of the union there are different areas to watch deregulation could impact in a good way. >> infrastructure. >> infrastructure. financials as well that could be swept up there
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drug pricing that could be a hit tomorrow what will you be looking for. >> and how combative he is with democrats, right so if he tries to be somewhat conciliatory maybe he has a higher chance of getting something done if not i think on these other issues he'll have a hard time getting something done. >> i think health care would be interesting in the context of today's news with amazon and j.p. morgan and berkshire. i think the infrastructure trade -- we know that there is going to be preference to it how significant i don't know but if you look at how these stocks performed in the afternoon, steel stocks got destroyed today. i started -- i'm talking maybe 15% nibble back into steel. >> ak was crushed. >> i think u.s. steel a more diversified play that's at least going to be -- ak is if you're exposed to autos and higher grade stuff. the infrastructure trade is alive and well i like cement, i like materials, those are trades that go high we are yields if we're worried about yields going higher, you want assets going higher as well. >> let's bring in tony dwyer
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you're here just thursday warn us that a pullback was coming. >> i wish that was the first time i've done that. >> is this it? >> it's the start. i can't believe the two guys on the set that i'm the bear out of the two. i have to tell you that i think that this was a fundamental move today and here's how i say that. last week we did a chart on thursday, it was what happens when there's so few bears in the investors intelligence survey, both in 2014 and 1986 you had high volatility. you had upside, new highs each time but you had a number of pullbacks. and i think the reason far is you have a disconnect. as karen was talking about, you have a fed that might be worried about the economic data. the economic data is strong. nobody can say that that is not correct. here's the problem -- expectations are too lofty so you have the disconnect of a fed that appears to want to be
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more aggressive on the data anened an investor that's been too high in expectations on the sentime sentiment. so as they equal out you'll get this volatility. this will be the greatest opportunity for professional active managers because you're going to get to buy -- i like to call them wooshes. you're going get this whoa, what was that that's from a market that's active. >> a 1.57 decline on the s&p 500. is that the woosh you buy? >> no, it's not. let's do what most strategists won't do i will give youparameters to what qualifies as a woosh. i will take the percentage of stocks above their ten-day moving average dropping down 10%. >> from where is it now. >> i didn't check it at the end of the day probably somewhere in the 20s to 30 the vix at 20 not at 14 as karen pointed out. you need a higher vix so maybe i'll miss this one like the last year where you never got to those levels.
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what happens when investors get optimistic increased volatility with increased upside so i'm not backing down from my target. frankly, i'm 100 points too low. >> if we wait for your woosh it may never happen do you do anything with this mini woosh or whatever you want to call it >> well, on thursday i said there's a great saying sometimes, don't just do something, sit there sit there. the fundamental backdrop is fantastic. you have good economy, you have good earnings, you have a fed that even on rates hasn't inverted the curve. >> so i agree with the setup but you have an investor that doesn't have any powder. the fully problem is the cas levels are lowest in ten years depending on who you're asking they haven't been this low in 20 years. >> and you have a lot of people that say hey, i've done well here and if they're smart and they're investors and they realize if you're greedy you're going to get slaughtered >> our call thursday to our
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investors, as you know, is if you're levered in equities, levered up, at the three times long or if deep cyclical areas, neutralize it. when you get these wooshes up, you have to neutralize it. you can't stay levered long and not worry about it if you are levered long, neutralize it. if you're significantly overweight, the aggressive sectors, neutralize. >> it aggressive sectors meaning what >> tech, industrial, the ones i like honestly. the ones i want to buy on weakness when i look back at the history of the market when you narrowed the yield curve to the current degree it is, believe it or not, over the next six to 12 months you want to be long. so not backing away from the 31,00. not backing away from our sector picks but if you're levered long after a 7.5% three week move,
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maybe you want to take a little off the table. >> take a breath tony, thank you. >> what did you do today >> health care, bought a lot of health care. i think the biotech names will continue to work bought hospital names on a pullback, some of these insurance stocks on a pullback that was an opportunity for people to step in and make money. >> i want to start nibbling on the health care space as well. >> you want to or you do >> i want to you have to remember i'm 99% in the market already so if i had to add -- >> what are you going to sell? what would you sell? >> one of my underperformers i've been lucky enough that i had a couple of them but vista outdoors i'd probably sell and lighten up and buy health care. >> vista outdoors was formally the gun stock, right >> yes. >> smith & wesson. >> here's what i say don't cut your flowers and keep your weeds if you're having a pullback if you have companies that will outperform on the way down, there's a good chance there's a better reason to hold the companies. so this is what people do during this time.
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but two days does not make a woosh, it does not make a correction and where we ended last week was absurd and there's still a place where you can get the markets to settle out. i agree with steve there's big rebalancing going on and people need to wait for earnings season. by the way, at some point we get through earnings season and there's not a lot of catalysts for markets that aren't elevated >> we have a lot of tech coming, facebook, google. >> the thing i wrestled with most today was anthem because all the other stuff went down with the market and it will go up or down with the market anthem i'm trying to figure out how big a threat is this amazon/berkshire/j.p. morgan thing. those three together, that's a threat if you read the release, though, it's so vague, it even says "at this point we don't have any answers. >> they don't have a ceo even. they've kind of got a lot to do. >> it 's somewhere down the road
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however, a try yhreesome like t you have to worry. i didn't a a knee jerk reaction, it was a punch in the gut reaction it didn't feel good but i'm hanging on to t. coming up, check out shares of amd and electronic arts those conference calls under way. we'll bring you the latest details. plus steve wynn feeling the heat after numerous sexual assault allegations and with the wynn hotel ascenter piece for top entertainers in vegas, have any of the entertainers or conferences canceled we have a special report later, a bitcoin beatdown. the cryptocurrency sinking a thousand dollars today as the cftc and facebook are cracking down the selling could be about to get worse according to one get worse according to one under-the-radar market (dane chauvel) sometimes the product arrives, and the cold chain has been interrupted,
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and we need to be able to identify much more "fast money" straight ahead. much more "fast money" straight and we developed devices to track environmental conditions. this device allows people to understand what's happening with the location, owf your product, it keeps everybody kind of honest that way. who knew a tiny sensor could help keep the food chain safe?
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♪ welcome back to "fast money," check out shares of twitter flying almost 2%, hitting its liest level since november, 2015 shares traded above that key $26 ipo price. the stock is up more than 12% over just the past one week. so the stock was pitched last night, how much higher does it have to go >> i'm eyeballing the october, 2015 levels, that brings you up to $32 in the price tag.
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that's a healthy move from here, especially since the stock couldn't get out of its own way for the longest time but i do believed nodo is winding up, that negative headline is winding up, people are looking at it, there's the mna activity, there's always been there, or potential, but they're getting their act together with or without nodo. >> do we have an idea of who fills the gap? >> if they were smart they eat get a marquee name, a marquee player, but twitter was going to recover or not recover with or without anthony nodo the absence of him doesn't mean he won't zblurn do so you have the ceo of square and ceo of twitter and he's obviously divided his time to some degree and then you have noto who's gone, who has a great tale talent and there will be no impact >> i believe there will be an
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impact you saw the impact already and that's out of the by way, coole heads were prevailing. noto is there, stocks were sold off 40%. he's gone and we should sell it off further? >> noto leaving is a perfect indication the company isn't being sold in the near term period he would haven't left. >> he left to be a ceo. >> doesn't matter. number two, let's think about this, it's being taken up on takeover speculation remember what happened last time, crm? all these stocks took a dirt nap when they thought this company was going to buy -- >> what is a dirt nap? >> they sold off massively crm sold off massively why? because the shareholder base that owns those stocks don't want them to own that company. they don't a monetization problem, they have a user growth problem. they can't solve that problem. no growth manager will touch the story. so it's up on takeover speculation. there's no reason why -- >> this is not a fundamental
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rally back, in other words. >> correct. >> i respect your thoughts, i think anthony noto as people are knocking is a challenge. he was a stabilizing force but they're returning to revenue growth they'll be u.s. gap profitable for the first time ever probably so the engagement on twitter is only growing the platform's importance in a world of probably very decentralized media which is trying to con sal da trying to consolidate again, that's good. you notice the production team was playing "rocking robin" on the way in >> they don't miss a trick. >> crack staff up ahead, steve wynn, the center of sexual assault allegations. are corporations or entertainers pulling away from the wynn organization i'm melissa lee, in the meantime, here's what else is coming up on "fast." >> announcer: the death sthar
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that is amazon is at it again, taking aim at health care. but now may be the time to buy those beaten names we'll explain. plus, yeah, that's what bitcoin investors are doing and if you think you're going to get saved, a top market watcher says think again. meinchged about bitcoin. he'll be here to tell us about hi, i'm bob harper, and i recently had a heart attack. it changed my life. but i'm a survivor. after my heart attack, my doctor prescribed brilinta. what that is when "fast money" returns.an 100 milligrams
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(cheers) what's it worth to talk to your mom? what's the value of a walk in the woods? the value of capital is to create, not just wealth, but things that matter. morgan stanley welcome back to "fast money," bitcoin falling below $10,000 as regulators cracked down on crypto, now facebook is joining the fray we're at the new york stock exchange with more hi, bob. >> more news on bitcoin. it wasn't just a tough day for stocks, it was also a tough day for cryptocurrencies in general. bitcoin dropped below $10,000
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once again but it closed fractionally above that. importantly, most of the selling occurred in the morning and mid-afternoon when u.s. traders would dominate remember, all the cryptocurrencies dropped in december on concerns of a crackdown or outright ban from south korean and chinese regulators this time it was deft. it was reported the cftc sent a subpoena to bitfinex in december it's the world's largest bitcoin platform tetter is a cryptocurrency that claims it's back by one u.s. dollar that is held in reserve this helps facilitate transactions at a fixed rate to the u.s. dollar. it's not clear what the subpoena is about but bitfinex and tether share the same ceo now tether says its coins have backed by u.s. dollars held in reserve but the company hasn't provided clear evidence of its
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holdings this is important because it's easy to trade the token for a bitcoin at bitfinex and that may have been a factor at lifting bitcoin prices so in addition to regulatory risk, there's another roadblock for cryptocurrency promoters, let's call it advertising risk today facebook said it was banning all adds that promote cryptocurrency including bitcoin and it includes initial coin offerings, those are icos, claim manager companies in this space are "not currently operating in good faith." huh. the ban will extend beyond facebook's core apps and include instagram as well. here's the funny part, melissa, facebook's board of directors include two investors, marc andreesen and peter theil who have been crypto backers are retail investors falling out of love with bitcoin
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gasp nick, you have some surprising crypto info. it seems like interest is waning a bit, isn't it? >> more than a bit we look at google trends to see how many people are searching for anything with bitcoin in the google search engine going into december it tripled in terms of total number of searches worldwide and you saw that correlate to the increased number of wallets. wallet growth went from 4% monthly to over 10% in december. what do you think happened bitcoin rallied to these highs but since then in january, the search volume has come way down, down 75% and wallet growth has slowed as well back down to the 4% level so it's a case where you have a hold interest in new bitcoin owners to get bitcoin to grow up. >> so wallet growth in terms of the number of wallets open but that doesn't necessarily reflect the amount of money in that wallet or being put in that wallet or traded within that wallet have you noticed if perhaps the search is brought in from bitcoin to ethereum, light coin, ripple, some of the other coins throughout >> it has. bitcoin has what i call the
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gateway drug to all cryptos. and it has -- >> interesting phrase. >> and that's how it moves so some of the movement in ethereum, which is traded much better, has been money getting pulled out of bitcoin. so the ratio ofsearches in google correlates the market cap values of the different cryptocurrencies. >> how much of a leading indicator do you think this could be >> so far, it's been a very reliable leading indicator. >> is it leading or coincident. >> it's leading to wallet growth which is coincident with price, which makes a ton of sense so right now it's telling me there isn't that next leg up in bitcoin because we're not seeing the next leg up in business that leads to wallet growth that leads to appreciation. >> to what extent can you do analysis on the correlation between bitcoin and what's going on in the overall market on a day like today it doesn't surprise me to see we can't -- this may not be affair assessment of bitcoin holders, but the reality is this is not a stable group of institutional investors. what do you surmise on the next
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move if this market goes lower >> you're spot on. i was interested to see the correlation of the pulldown in bitcoin with futures trading in the morning. we also use google trends to see when people google the stock market that's been a reliable indicator of volatility that day and searches for stock market before they opened today were the highest in a week. the only prior time was the close on friday so that told me people were worried about it and i think that open was retail investors saying, whoa, probably out over my squeeze, let's pull back in, institutions didn't come in in to save us, same thing happened with bitcoin, pulled down at the open, people said i have to pull back risking everything i own. >> you don't sense this is the same pool of people, though? or are you >> it's people with money. people with money tend to put it places -- stock market, bitcoin. it's a small fraction. there's only 22 million wallets in the world there's many more brokerage accounts but in terms of who can invest in anything, it's the same affluent base of people. >> nick, great to see you, ni
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nico -- nick colas. >> the institutional investor in my opinion, what i'm seeing, seems to have skyrocketed. they're drawing major institutional investors to this, you're seeing the likes of big big funds in the u.s. and across the world gravitating towards these conferences. they're the next money, the next leg of investment that jumps in here and i think that's when you see a massive turn. >> when you look towards the government and regulations, you have february 6 i think is the date we were talking about as far as the senate banking and finance committee that is going to start to revisit bitcoin and regulations and i think people will get out of that way until they see what type of dialogue and how it sounds and the heat coming out of these senator's mouths is going to be. >> we should note robin hood goes live on thursday in terms of bitcoin trading you can trade for free
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that had been a big nothing on coin base. the fees to get in and out of a trade are pretty high. >> i can't help think, though, that the shareholder base in the market is now overlapping more with the bitcoin holder than ever was the case. one of the things about bitcoin was it wasn't correlated to anything i can't help but think they are far more correlated now as it goes mainstream and as we have other instruments to use beside bitcoin and so when you have a really difficult market like we did today, stock market, i think the correlation is going to be higher going forward. >> but bitcoin lost its edge before this move. >> but i think about a lot of the money that funded these bitcoin accounts. credit card was the easiest way to do it that is levered money. if you made some dough, that's why these responses, futures markets are more levered there you go. still ahead, electronic arts and advanced micro on the move
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after hours. those conference calls are under way. we'll bring you the headlines later this hour. plus, wynn under fire, pressures mount. contessa brewer is live in las vegas with more. hi, concontessa. >> coming up, i'll tell you nvti a happening to the coenonnd conference coenonnd conference business and what happened t for yoo for yoo th
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the wynn backlash as the company's conference and events business comes under pressure. contessa brewer is in las vegas with more on this story. contessa >> melissa, the immediate question is whether brand damage affects the cash flow here, whether you'll see group bookings decline because of this scandal and public pressure and protest. the majority of wynn's revenue comes from non-gaming sources. conventions are a big part of that steve wynn is developing a new 26 acre property that will include several million square feet of convention space the republican governors association scheduled for wynn for 2020 has said they are not
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going to do it and i talked to the former mayor who represents the las vegas convention and visitors authority and it infuriates him. >> it's outrageous to me it's outrageous. these are people who are supposed to believe in our system where one is presumed to be innocent. where one is entitled to a fair hearing before they make a move against them it's very unfair to potential attendees. >> the consumer electronics show has refused to comment about what happens to its future at wynn and other convention have done the same. i talked to two women attending a real estate conference asking if they felt awkwardness about being here and they said no, they could separate out the wynn resorts and the luxury brand it is with the man at the center of the controversy and in terms of whether you're seeing a decline in room reservations or cancellations, let me put this in perspective my producer tried to book a room at wynn tonight, couldn't.
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it was sold out. i head to boston tomorrow for the gaming conference by the commission in massachusetts that will review these allegations in light of the accusations against steve winne andynn and i'm expeo hear what this might mean for the of wynn boston harbor analysts expected to be one of the biggest money makers in terms of revenue. >> what are they going to do >> they're saying they could revoke the gaming license for steve wynn as an individual. they could revoke the corporate license. why would they do that when there were 4,000 union jobs on this construction site the big question is do you want a wynn-branded casino in your state when these accusations came out there was an immediate reaction from the commission saying they were going to pursue it with rigor and would they
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have awarded a license to wynn had the accusations been public then that's a big question. >> contessa brewer in vegas. a question, are wynn shareholders better off with or without wynn >> i'm thinking without because at some point they were going to be without wynn anyway but let's say you were to wake up tomorrow and hear he stepped down i would wonder if it's up for sale that would be better for shareholders if they thought the prospect of the sale in the near term, i think the stock would trade up. >> i tell you, i think they'd be fine without him in the long run. in the short run you'll take a hit. this is the whole pall hanging over the stock the stock rallied today on a bad day so maybe this is telling you something but the valuation of woip right n wynn right now is very attractive this is an asset story
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i realize steve is a powerful figure in the world but this company moves on without him. >> why not buy another asset in this good story without the overhang and unknown of how this will impact the business >> it's a cheap asset. >> cheap enough that it's already had potential lawsuits and -- >> you know, i think am sot poinl when more news comes out if everything was where it was it would be a cheap asset. >> and china exposure is another reason you don't want to. >> but the concession is up in 2020 they could do the same thing they might -- >> is there any chance he survivors it >> think of it this way, it's not a prevailing technology where you need an innovator to manage this business from new innovation and a clear path in how the growth is going to accelerate, you need somebody to manage this business. there's plenty of people around that can do that effectively the ground has been laid and they'll move the needle forward. >> up 4.8% today is there a possibility that steve wynn was in the market
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buying his own stock >> that's a good point. >> he is noted for being a great buyer. >> this was an outside day we had a higher high, a lower low and i said that was too soon to be buying wynn. i feel that way but it was uncharacteristically strong and as tim said a weak tape so look at the last two days and make sure it doesn't breach their view. >> steve is right, here is some perspective on a stock if you take us back to where we were three weeks ago the stock is after this bullback is where this stock was this stock went stratospheric before this pullback and you're still at a very elevated run in the stock after months and months of rallying i don't know why you need to buy it tomorrow. still ahead, check out the big afterhours movers, electronics arts and advanced micro higher plus, amazon wreaking havoc on health care stocks today as the company makes a major play in the space but if history is any indication, this could be the
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we cut the price of trades to give investors even more value. and at $4.95, you can trade with a clear advantage. fidelity, where smarter investors will always be. amazon taking no prisoners, this time with its target on health care. let's go to the sickest man we know, dom chu back in the newsroom. >> i'm hoping that's the good kind of sick, kind of like phat. when amazon decides to hint at
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doubling in an industry, the effects are felt in the stock market for sure. just today, amazon, berkshire, j.p. morgan chase teaming up to tackle health care costs, shaving $75 billion off the market cap in this sector overall and one of the more recent examples prior to today's fireworks was last summer's news of amazon's foray into brick and mortar groceries yes the whole whole foods situation. and if you can't remember when those rumors and headlines made their way into the markets, just look at a chart of, say, kroger or costco or walmart or sprouts farmer's market over the last year hint, look in june each one of these stocks took a decent sized dip around the middle of the month and to be fair some did go lower in the weeks that followed. but take a look at each of those stocks and their charts from then until now kroger stock is back to where it was before the amazon whole foods news hit costco stock is actually sitting near a 52-week high the last two days not w standing. it was a small bump along the
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road for walmart stock which has been on a steady climb ever since to record high levels and even a smaller grosser eer groce sprouts farmers market is back up to 52-week highs at all this isn't to say amazon isn't a disruptive force obviously melissa, it is but some traders may be eyeing today's weakness in health care related stocks as a possible opportunity. back over to you yo guys >> thank you, dom chu in the newsroom speaking of the force, shares of cigna, anthem, abbvie, all down. is this the time to buy them >> i think now is the time i don't think you take your foot off the gas. it could take them a long time to get into the mix here and
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have competitive threats. >> i agree when the amazon/whole foods deal happened, that happened, done, they closed in three months or however long so you could immediately see the effects. here we are a ways off from seeing what -- >> they said they want to lower prices so every american family pays less for their groceries and they don't care about making the profit and that's what they're saying in this press release. >> not for profit, u.s. employees and hopefully the american people will pay less for health care. doesn't that cast this in a very different light? >> no, because -- that part is different because that it can't happen right away. whole foods happened right away, right? immediately they started lowering prices. >> we don't know how they're going to help these one million
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employees of theirs. but ultimately if you think about unh, these guys were helped as much as anybody by tax reform unh when they had fantastic numbers they told you they raised guidance by 18% based upon tax numbers they were as aggressive as anybody. amazon reports earnings after the bell on thursday one trader is betting on a big rally for the tech giant mike's back at the death star. what are you doing there >> well, we're talking about the death star, aren't we, when we talk about amazon so this seems like an appropriate place to be. this is a stock that typically moves about 8% on earnings, that is what the options market is implying we're going to see this time as well we saw a large trade, the april 1440 call spread traded 3,000 times for $26 apiece that's $2600 per trade or risking about $7.8 million that the stock was going to be above 1440 by april expiration the thing is, the move we saw today, much of that has been
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made with the stock trading just below that level but it was a big bullish bet. by the way, 8% move, $55 billion market cap swing that's how big the stock is. >> i think the death star suits mike, actually. >> i've always kind of known about his dark side, too. >> for more options action check out the full show friday, 5:30 p.m. eastern time. coming up; advanced micro seeing a full reversal. the stock is higher by half a percent after ing bedown more than 5%. than 5%. we'll tell you what's the hesitation? eh, it just feels too complicated, you know? well sure, at first, but jj can help you with that. jj, will you break it down for this gentleman? hey, ian. you know, at td ameritrade, we can walk you through your options trades step by step until you're comfortable. i could be up for that. that's taking options trading from wall st. to main st. hey guys, wanna play some pool? eh, i'm not really a pool guy. what's the hesitation? it's just complicated. step-by-step options trading support from td ameritrade investors flocking to this
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stock. stick around i've gotta say, i love the new place. oh thanks. yeah, i took your advice and had geico help with renters insurance- it was really easy. easy. that'd be nice. phone: for help with chairs, say "chair." phone: for help with bookcases, say "bookcase." bookcase. i thought this was the dresser? isn't that the bed? phone: i'm sorry, i didn't understand. phone: for help with chairs, say "chair." does this mean we're not going out? book-case. see how easy renters insurance can be
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at geico.com.
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i think the dynamic here is -- people are looking for ways to play blockchain, these guys are articulating this is a meaningful part of incremental or the delta on their growth is coming from blockchain
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that's good news they're right to not tell you they don't know how much it will be going forward because they can't apply it but i think the stock sideways from here. i don't -- i don't jump it. >> yeah, they're looking for a blockchain play. you go to an amd or ibm or -- >> no, because i think it's the tail wagging the dog if you want that exposure, that's not enough, it's not direct enough. to me, i would -- i'm glad amd -- it seems like the issue is behind them in terms of flawed healthdo eeet i' let'd rather yes or no? do you want the same tools and seamless experience across web and tablet? do you want $4.95 commissions for stocks, $0.50 options contracts?
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$1.50 futures contracts? what about a dedicated service team of trading specialists? did you say yes? b >> up next, final tradeseconds . let's do some card twirling twirling cards e*trade. the original place to invest online. today, smart planning is helping the new new york rise higher than ever. as the world leader in unmanned aerial systems, we're attracting the world's best talent to central new york. and turning the airport into a first-class transportation hub. all while growing urban areas into vibrant places to live and work. across new york state, we're building the new new york. to grow your business with us in new york state, visit esd.ny.gov.
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time for the final trade let's go around the horn tim? >> during a period where we may or may not have market volatility, stocks is steady as she goes i realize there was volatility in their last earnings numbers i like the name, i stay there. >> karen >> yes, gm, i'm sticking with it they're reporting february 6 they're already given us insight into how it's going to be. i think if it's 6:50 it's going to be good i'm long. >> 32? >> 33 now. i'm justified to see mcdonald's down 3% today. i think it's a buy after the quarter they just put up bye mcdonald's. >> pete? >> rite aid. it was hurt with the amazon headlines but ultimately this will be a tail wind to them.
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it's a turnaround story with or without the tail wind from the amazon story rite aid $2 number, tremendous upside. >> i'm going to ask why you call me 32. >> they'll have to wonder. i'm melissa lee, up next, "mad money" with the one and only jim cramer starts right now. make you money i'm here to level the playing field for all investors. there's always a bull market somewhere, and i promise to help you find it. "mad money" starts now hey, i'm cramer. welcome to "mad money. welcome to cramerica other people want to make friends. i'm just trying to make you some money. my job is not just to entertain but to educate and teach so call me at 1-800-743-cnbc or tweet me @jimcramer. yo

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